We automatically claim your basic rate tax top up (which is a contribution from the government that is worth 25% of your contribution), for you and then add it to your Penfold pension. 😃
It normally takes around 6 to 11 weeks, from the date of your payment, for HMRC to process the tax top-up into your account. Read How long does it take to get the 25% tax top-up? for more information.
If you’re a higher rate taxpayer or a top rate taxpayer, we claim your basic rate tax top ups for you, but you have to apply for the higher rate tax relief yourself on your Self Assessment tax returns. Find out how to claim this by visiting our article How to claim higher rate tax relief on pension contributions.
It’s important to remember that only personal payments to your pension will get the tax top up (not payments coming straight from a Ltd company), and the amount you can get in total from tax top ups is dependant on your individual situation and can change in the future.
Read our 3 Little Known Tips for Getting Money from the Taxman blog for more information.